I don't much buy the Fat Finger excuse given by Gartman this morning. I've become cynical, everything means something completely different than what you are told or see.
Perhaps, this Fat Finger trade was given as explanation so that unuspecting shorts could re-establish their positions in order to get run over by a dollar march upward.
I am impressed that gold has come back up inspite of the dollar strength.
I find it very fascinating that 1 month yields on treasury aren't suffering but 3 month out to 3 years are tanking while 5 year yields haven't broken down.
This in plain language suggests that people are very scared moving 3 months down the road all the way out to 3 years from today, but feel a bit more comfortable around year 5. What is it that's scaring everyone 3 month's out and dropping treasury yield to zero in "this flight to safety"?
I don't believe the dollar is poised for any kind of rebound or "gap filling" at higher levels. National debt is just about to hit it's $12.1 debt ceiling (http://www.usdebtclock.org/) which requires congress to pass legislation to raise the ceiling. They are afraid to announce just how high they really want to raise it to accomodate ballooning future debt because it focuses world attention on just how bad our debt problem really is. Match that thought with California's latest news release of $21 billion shortfall, Federal court decision opening door for 100,000 folks in New Orleans to recover tens of billions from U.S. taxpayers for defective canal that gave way during Katrina, unfunded liabilities in excess of $106 trillion, and international investors will view America's fiscal responsibility as a joke. Even China expresses concern how the U.S. plans to take on the added cost of proposed healthcare.
Dollar's weak knees will give in big time very soon. And those knees will not obtain knee replacement surgery free of charge under the guise of free healthcare for all. Gold and silver will prosper.
My question is rhetorical because I know very well what should be scaring everyone, but for some reason, no one is scared 1 month out and this flat lining in the yields only began recently. So, the fear is recent.